Affordability Calculator
Estimate your maximum home price using DTI, rates, down payment, taxes, insurance, HOA, PMI, and closing costs.
How Much House Can You Afford?
This affordability calculator estimates a maximum purchase price by combining income, debt obligations, mortgage assumptions, taxes, insurance, HOA dues, PMI, and closing costs. Instead of only using principal and interest, it models full monthly housing costs.
DTI Ratios and Lending Capacity
Most underwriting models use front-end DTI and back-end DTI. Front-end compares housing payment to gross income. Back-end compares total debt obligations, including housing, to gross income.
Why Full Housing Costs Matter
Property taxes, insurance, HOA dues, and PMI can materially reduce purchase power. A home that fits your principal-and-interest target may still exceed affordability once recurring non-loan costs are included.
Upfront Cash Planning
Affordability also depends on how much cash you can bring at closing. Down payment plus closing costs determines whether the estimated purchase price is practical for your current savings position.
Frequently Asked Questions
What DTI ratio is acceptable?
Many borrowers target about 28% front-end and 36% back-end, though program limits vary by loan type and lender.
Do HOA dues impact affordability?
Yes, HOA dues count as monthly housing expense and reduce the principal-and-interest payment you can support.
Should PMI be included?
If your down payment is below 20%, PMI is often required and should be included in payment planning.
Can I change DTI assumptions?
Yes. You can adjust front-end and back-end DTI limits to model conservative or aggressive qualification scenarios.